Country Club Hospitality & Holidays Ltd. (CCHHL) - Chairman Speech

Company chairman speech

COUNTRY CLUB (INDIA) LIMITED
ANNUAL REPORT 2011-2012
CHAIRMAN'S REPORT
Growth trends
The tourism and hospitality sector's direct contribution to the GDP in 2011
was estimated at US$ 32.7 billion. It registered a compound annual growth
rate (CAGR) of 13 per cent during 2006-11. Total contribution increased to
US$ 76.7 billion in 2011 from US$ 56.3 billion in 2009. The total
contribution comprises direct, indirect and induced contribution to the
GDP.
Foreign Tourist Arrivals (FTAs) during the Month of April 2012 was 452,000
as compared to FTAs of 438,000 during the month of April 2011.
Indian medical tourism is a sunrise sector valued at more than US$ 310
million. Currently, India receives more than 100,000 foreign patients a
year. The number of medical tourists is anticipated to grow at a CAGR of
over 19 per cent during the forecast period to reach 1.3 million by 2013.
Foreign Direct Investment
Foreign direct investment (FDI) of up to 100 per cent is permissible in the
sector through the automatic route. The term hotels include restaurants,
beach resorts, and other tourist complexes providing accommodation and/or
catering and food facilities to tourists. Tourism related industry include
travel agencies, tour operating agencies and tourist
transport operating agencies, units providing facilities for cultural,
adventure and wild life experience to tourists, surface, air and water
transport facilities to tourists, leisure, entertainment, amusement,
sports, and health units for tourists and convention/seminar units and
organisations.
According to data released by the Department of Industrial Policy and
Promotion (DIPP), the hotel and tourism sector has attracted FDI worth
Rs.14,770.58 crore (US$ 2.64 billion) between April 2000 and January 2012.
Government initiatives
The Ministry of Tourism functions as the nodal agency for the development
of tourism in the country. It plays a crucial role in coordinating and
supplementing the efforts of the State/Union Territory Governments,
catalysing private investment, strengthening promotional and marketing
efforts and in providing trained manpower resources.
Augmentation of quality tourism infrastructure throughout the country is a
key area of functioning of the Ministry. More than 50 per cent of the
Ministry's expenditure on Plan schemes is incurred for development of
quality tourism infrastructure at various tourist destinations and circuits
in the States/ Union Territories (UTs).
Some of the major initiatives taken by the Government of India to promote
tourism and hospitality sector in the country are:
- Gujarat has allocated Rs.400 crore (US$ 71.6 million) for tourism
promotion in the State during the current fiscal. The amount includes
Rs.120 crore (US$ 21.49 million) as grant which has been approved by the
Planning Commission for 2012-13.
The Andhra Pradesh Tourism Development Corporation (APTDC) is investing
Rs.300 crore (US$ 53.72 million) to implement nine hotel projects and
develop new facilities, including three eco-tourism sites.
In an endeavour to give a stimulus to the 'Incredible India' campaign and
cinema as a sub-brand of Incredible India, at various international film
festivals abroad, the Ministry of Information and Broadcasting (I&B) and
Ministry of Tourism have signed a memorandum of understanding (MoU) to
provide support for film tourism.
It is proposed to promote places of tourist interest under the control of
the Central Agencies. The developmental work under this Scheme taken up by
the Central Agencies should follow prescribed norms and the
monuments/structure should be restored to its original form/condition.
State Tourism Development Corporations are entrusted with responsibility of
formulating and implementing Rural Tourism Projects in consultation with
District Collectors/Deputy Commissioners to ensure convergence from other
yojnas, schemes and allocations for broader/integrated development at the
site to benefit local communities.
The Department of Tourism will provide financial assistance to State
Governments / UT Administrations for organising fairs / festivals and
tourism related events such as seminars, conclaves, conventions etc. for
the promotion of tourism.
Road ahead
The Indian tourism industry has been upswing for last few years partially
due to an excellent 'Incredible India' campaign and is expected to rise up
to US$ 431.7 billion by the end of 2020.
The presence of world-class hospitals and skilled medical professionals
make India a preferred destination for medical tourism. The segment could
earn India US$ 2.2 billion per year by 2012. Tour operators are teaming up
with hospitals to tap this market.
Cruise shipping is one of the most dynamic and fastest growing components
of the global leisure industry. India with a vast and beautiful coastline,
virgin forests, and undisturbed idyllic islands can be a fabulous tourist
destination for cruise tourists.
India has the potential to develop the rural tourism industry as most of
its population resides in rural areas. This can benefit the local community
economically and socially, and enable interaction between tourists and
locals for a mutually enriching experience.
Signed
Y Rajeev Reddy
CMD